Legal Question in Consumer Law in Oklahoma

Debt Collection Agency

I have a debt with a wireless company which was turned over to a collection agency. I am currently unable to pay the lump sum, or even the installments they are offering.

The collection agency sent me a letter with a settlement offer which is about 75% of the original amount. I was advised by a friend to reject this offer, that it would have an even worse effect on my future credit. What would be my best course of action?


Asked on 9/22/08, 11:06 pm

1 Answer from Attorneys
Wayne Allison Allison Legal, LLC

Re: Debt Collection Agency

If the wireless company reports the default, your credit will be negatively affected, regardless of how you settle the debt. If you settle a debt for less than its full amount, other creditors down the road will know it, presuming it is reported that way; the future creditors may view this quite negatively. I don't know that it would "have an even worse effect," as much depends on your entire credit record, not just this one transaction.

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Answered on 9/23/08, 9:43 pm


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